College-Early Decision--Legally Binding?

[TinkOhio]

I'm trying to gather information to help a friend's daughter navigate the college early decision process. In a nutshell, she was accepted to the college of her dreams through early decision. Unfortunately, the college sent an acceptance package with no final figures. The paperwork received led her to believe that the expected family contribution would be quite steep.

She also has been recently contacted by another good college that is offering a very generous merit package. The difference in expected family contribution over the course of four years could be tens of thousands of dollars.

How legally binding is the early decision process? Although she loves the first school, the family isn't sure if it will be affordable. The school wants a firm answer by the 15th. Is this normal for the early decision process? She (and her parents) are worried about losing out on the generous offer from the second school should they accept the first school's offer first. Would the first school be able to seek legal recourse if the family backs out?

I don't have much help to offer my friend (and her daughter) on this situation, but I have seen some very helpful posts on the boards about college financing. Does anyone have advice or information to share?

TIA for any help!

 

[js]

I believe in a nutshell your FA is not binding if you cannot afford the school. There is a board like the dis for college which is a wealth if information called collegeconfidential.com

 

[lions1995]

I can not say for sure, but I do not think it is very binding. If they have to put money down (which I doubt) they might lose it.

That said, the best advice if for her and her parents to reach put to her dream school and be very honest. This is where she wants to go, but she'd nah not be able to afford it. They may want to show what. The other school is offering.

This is her education and her debts, colleges want students to take both very seriously. I suspect the college will try to work with her, but it may still not be enough.

 

[quirty30]

I'm curious about this too. My son is a junior and we have been doing a lot of research. He has one particularly competitive school in mind for early decision, and I have discovered that the more competitive schools (Ivy League, Stanford, Northwestern, etc.) tend to more thoroughly scrutinize parental financials. I have a hunch that he would end up in the same boat as your friends daughter - admitted to the school of his dreams with prospects of a not so appealing aid offer.

After I saw your post, I Googled, "Is early decision legally binding?" And I came across this article, that I think you will find helpful:

http://www.dailyfinance.com/2010/11...sion-admissions-break-contract-financial-aid/

 

[sharbear]

Early Decision is not legally binding. It can be turned down if the financial aid package is not sufficient.

This is why you don't apply early decision! You can't compare FA packages. I know this isn't your kid but the college she applied to has a net price calculator on its website. Did they use it? It should tell them what they are expected to pay.

The net price calculator can be off, if the parents are divorced or self employed.

I hate to see kids apply ED unless they are a recruited athlete or can pay and are happy paying full price. Because you never know what another school is going to offer and if that offer will be too good to turn down.


Sorry, a pet peeve of mine.

 

[danygirl]

I think the whole point of early decision is that you are 100 percent in love with the school. That said, the juicy aid packages go to those they are really trying to recruit, not the ones who are so committed they applied awry decision.

Some if these are binding some are not. Your high school college advisor would be a big help in understanding this and should have been consulted before the aps went in. Talk to them now and get info and advice on this situation and how best to proceed.

My dd signed a binder when she applied to her dream school. When she accepted she was required to notify the other schools she applied to immediately. My guess is if they accept by the 15th it is binding and their won't be merit money just need based money.

 

[amcnj]

Don't know if it is true, but always heard while not binding, schools get upset about you backing out and that they "talk" to each other about such things. Like I said, that may just be a fairy tale, and also I always wondered even if they do talk, can it really affect anything at that point anyway?

 

[cvjw]

This is why you don't apply early decision! You can't compare FA packages. I know this isn't your kid but the college she applied to has a net price calculator on its website. Did they use it? It should tell them what they are expected to pay.

I hate to see kids apply ED unless they are a recruited athlete or can pay and are happy paying full price. Because you never know what another school is going to offer and if that offer will be too good to turn down.


Sorry, a pet peeve of mine.

We are in Georgia, and UGA accepted right at 10,000 kids last fall. 9000 were accepted early decision, and that left about 1000 regular decision. Luckily, my son was accepted EA. You were pretty much SOL if you applied for the regular decision. Just another point of view.

 

[kamik86]

I know when I applied many claimed to be binding but I'm not sure how true that is. Personally I avoided applying to any that were binding. I had an award for a scholarship with my second choice school that let me apply something they called early action (which wasn't binding but still accepted or rejected me by November but I didn't have to make my decision until Feb) this allowed me to only apply to one other school (lots of saved time and money on fees) which was my first choice school. First choice school was also cheaper base price and matched the scholarship I was getting from the other award so I went there.

 

[tzolkin]

We are in Georgia, and UGA accepted right at 10,000 kids last fall. 9000 were accepted early decision, and that left about 1000 regular decision. Luckily, my son was accepted EA. You were pretty much SOL if you applied for the regular decision. Just another point of view.

Just to clarify, you said "early decision" but you also said "EA"-- I'm assuming that stands for "early action". Early decision is usually a binding agreement, early action is not.

 

[MOpGrad2013]

I believe in a nutshell your FA is not binding if you cannot afford the school. There is a board like the dis for college which is a wealth if information called collegeconfidential.com

EXCELLENT resource

I know when I applied many claimed to be binding but I'm not sure how true that is. Personally I avoided applying to any that were binding. I had an award for a scholarship with my second choice school that let me apply something they called early action (which wasn't binding but still accepted or rejected me by November but I didn't have to make my decision until Feb) this allowed me to only apply to one other school (lots of saved time and money on fees) which was my first choice school. First choice school was also cheaper base price and matched the scholarship I was getting from the other award so I went there.

Both DSs avoided the early decision (the one that was binding) when applying. That said, one son did send in his deposit for one school and then later learned he really wanted the other. He lost a portion of his deposit. The website and school had said 100% loss, but when he explained the situation, they gave him a decent amount back.

I think the best course of action is to contact the school. Something is wrong if the FA package does not have the complete numbers due. You should not sign a contract with blanks. The parents can also find out directly from the school what is binding and not binding--then check the legal side of what they are told.

And yes, schools definitely talk to each other. As soon as DS was accepted to one school, rival would send him a letter with similar financial offer (just send in the application and this will be yours...). But it is better to find out now. The student should not be discriminated against because they checked the wrong box and the finances are not there.

 

[LorieDisneyLover]

This is why you don't apply early decision!

Having just gone through the college process this past year with my daughter we found that early decision acceptances offered FAR FAR more merit scholarships then regular decision deadlines.

Most merit scholarships were gone by the time February came around -- we were told they are first come first serve.

She was accepted at the 4 schools she applied to ... and found that talking with each school and letting them know what the other schools were giving her in terms of merit scholarships helped ... usually with colleges offering to match the scholarships -- but only early on in the process. By March the schools were not negotiating any longer b/c merit money was gone.

So I'd say early decisions are important.

 

[briand1023]

Good information. Thanks

 

[lastminutemom]

Don't know if it is true, but always heard while not binding, schools get upset about you backing out and that they "talk" to each other about such things. Like I said, that may just be a fairy tale, and also I always wondered even if they do talk, can it really affect anything at that point anyway?

We are in Georgia, and UGA accepted right at 10,000 kids last fall. 9000 were accepted early decision, and that left about 1000 regular decision. Luckily, my son was accepted EA. You were pretty much SOL if you applied for the regular decision. Just another point of view.

Having just gone through the college process this past year with my daughter we found that early decision acceptances offered FAR FAR more merit scholarships then regular decision deadlines.

Most merit scholarships were gone by the time February came around -- we were told they are first come first serve.

She was accepted at the 4 schools she applied to ... and found that talking with each school and letting them know what the other schools were giving her in terms of merit scholarships helped ... usually with colleges offering to match the scholarships -- but only early on in the process. By March the schools were not negotiating any longer b/c merit money was gone.

So I'd say early decisions are important.

There is some confusion here. Early decision is not the same as early action (or rolling admissions).

Generally, one can only apply to one binding early decision school -- because the early decision application is a sign that if accepted you would attend.

Early action is not binding, just indicates that some applicants (who apply early) will hear earlier than others.

If $ is important, or going to be a factor, unless you have a very straight forward financial situation, it is generally not considered a good idea to apply to any Early Decision schools. (You can decline the offer if the $ doesn't work out.)

Every college and university has a net financial calculator. For most folks, the calculator does a pretty good job indicating what your family's responsibilities financially will be. (Some schools even include guaranteed merit awards in these calculations, others don't.) However, if you own a business or other such circumstances, it is harder to get an accurate read.

 

[sharbear]

If you apply to a college early decision, the school has you and your guidance counselor sign an agreement that if you are accepted to this school, you must accept the offer and withdraw all applications from all of your other schools. You can withdraw if the financial aid is not sufficient. You also have to file financial forms and when you receive your admission to the school they will send you what you will get in financial aid.

Most of the schools that have early decision, are schools in the $60,000/year range and do not offer merit aid but only need based aid. I am sure that rule is not hard but a large majority are.

Don't confuse early decision with early action which you de finely should take advantage of whenever you can.

 

[tvguy]

Most of the schools that have early decision, are schools in the $60,000/year range and do not offer merit aid but only need based aid. I am sure that rule is not hard but a large majority are.
.

Having run 2 kids through the college admission process in recent years, not sure I agree with the bolded. In my experience with my kids, those schools were MOST likely to offer every kind of aid and loan you can think of. My daughter went to 2 state Universities, and the only thing she was offered was loans. My son went to a Private university and did early decision, nearly a school at the price range you describe, and their financial aid office worked overtime to get money for their students. My son got a $10,000 a year grant every year from the University, and his Freshman year he also got a $1,000 grant from a private foundation.
The financial aid staff said their goal is to make sure every student admitted can pay to go to school their.
Now, as everyone who has gone through FAFSA knows, they expect you to sacrifice a few things to pay for your kids college, things like retirement savings. So what they expect you to pay may be more than you are comfortable paying, but it will always be what you can afford.

 

[bittybabygrower]

My DD did early decision for the university she is at now. She was offered more financial scholarships and aid than kids with regular decision. She was also in the first pool for room and class selection instead if having to wait and getting whatever was left over . She is attending a state university. She is also "price locked" at the tuition she is at now, it will not go up.

That being said, the private college she was accepted to did offer more money up front, which still did not bring it down to affordable, but there are possibilities of private benefactors giving grants and scholarships. This tuition is not price locked.

 

[allison443]

For the highly competitive schools, like Ivies, etc. mentioned by another poster, I believe the main reason students apply with binding Early Decision is because these schools have a very low acceptance rate (single digit!) and applying Early Decision gives you a better chance of being admitted. The down side is that you can't compare offers from other schools. Every college is supposed to have the NPC (net price calculator) on their website, plus you can estimate your FAFSA, so families should be able to have an idea of what the financial picture will look like for them.

An important statistic for universities is their "yield"-that is, the amount of accepted applicants who actually choose to attend the school. So by admitting people early decision, they are getting pretty much a "guaranteed" yield.

It can be confusing, especially the first time going through it. However, there is a wealth of information available online-the colleges own websites, collegeconfidential, collegeboard.com, etc. so really parents and students need to understand what they are doing when they apply early decision. I believe like another poster said there is an agreement that the student must sign when they apply ED.

 

[LOVETHATMOUSE]

My dd applied ED to her dream school and is in her 2nd year there. The only way we allowed her to do this was that the school would do an "early read" before you applied to estimate what your FA would be. I just had to submit all the info you normally do early..within a week they sent me the estimated package which was doable in our eyes (even with all our cutbacks here at home) and she applied ED and was accepted..got first choice in dorm selection as well. She received merit $$, talent scholarship , school grant and private grant from alumni in order to make it affordable for her. Her scholarships are also locked..if tuition goes up, so does her FA...regular decision kids did not get this option The school's reasoning for doing the early reads is they want to give the money to the kids who truly want to attend the school...they don't want a student to be enticed to go there because of the money they will receive...much better to have kids go there because they want to - not because it was where they received the most money. 80-90% of freshman were admitted ED at this school as well. I do know that my dd's high school GC said all schools you applied to are notified if you are accepted ED and decline it. She also said it does not look very good for that student through the other schools eyes even though it's not legally binding.

 

[dimimi]

Don't know if it is true, but always heard while not binding, schools get upset about you backing out and that they "talk" to each other about such things. Like I said, that may just be a fairy tale, and also I always wondered even if they do talk, can it really affect anything at that point anyway?

I have heard this too. Somehow the colleges know if you have committed to another school, yet are still applying. (Who knows, this may not be true.)

But, the best idea is for your friend to call the school directly.